The Financial/Economic Dichotomy in Social Behavioral Dynamics: The Socionomic Perspective

@article{Prechter2007TheFD,
  title={The Financial/Economic Dichotomy in Social Behavioral Dynamics: The Socionomic Perspective},
  author={Robert Rougelot Prechter and Wayne D. Parker},
  journal={Journal of Behavioral Finance},
  year={2007},
  volume={8},
  pages={108 - 84}
}
Neoclassical economics does not offer a useful model of finance, because economic and financial behavior have different motivational dynamics. The law of supply and demandoperates among rational valuers to produce equilibrium in the marketplace for utilitarian goods and services. The efficient market hypothesis (EMH) is a related model applied to financial markets. The socionomic theory of finance (STF) posits that contextual differences between economics and finance produce different behavior… 

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